An annuitant is the person to whom the payments of an annuity are made. In the context of insurance, annuities are commonly offered by life insurance companies. In such cases, the policyholder pays into the annuity and is usually the annuitant once the annuity matures and it is time to receive the regular payments.
Annuities offer individuals a way to plan for retirement and secure a fixed income source. Usually, the annuitant is the owner of the annuity, and many companies require this to be the case. However, some life insurance annuities have options to keep paying the annuities to a different beneficiary after the initial policyholder dies. Such annuities are a way for the policyholder to ensure the money they paid into the annuity does not go to waste upon their death and can benefit a loved one designated as a beneficiary. These types of annuities can supplement death benefits from the primary life insurance policy.
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